After years of struggles and months of speculation, Novartis is finally kissing its vaccines unit goodbye. As part of a company-wide revamp, the Swiss drugmaker will send the division to the U.K., where GlaxoSmithKline will be waiting with open arms to take on a vaccines business that will give it an edge in meningitis and bolster its pipeline.
Novartis CEO Joe Jimenez is on record saying he's "a big fan" of the company's consumer health business. But that doesn't mean he has to run it. The Swiss drugmaker gets to have its consumer health and hand it off, too, in a new joint venture with GlaxoSmithKline.
In addition to all of the other deals that Novartis announced today, an agreement to sell deal contract manufacturer LTS Lohmann is reportedly close, with private equity firm Nordic Capital expected to get it for about $1.7 billion, Bloomberg reported.
The full manufacturing implications of the complex three-way business swaps and sales that Novartis, GlaxoSmithKline and Eli Lilly announced today will take some time to sort out.
In an announcement full of surprises from Novartis and GlaxoSmithKline, the sale of the Swiss company's vaccines division to Glaxo may have been the least surprising part.
Why would GlaxoSmithKline sell most of its cancer business to Novartis? In today's deal announcement, that particular sale stands up for questioning.
Novartis, GlaxoSmithKline and Eli Lilly have hammered out a pact to swap, sell and partner on a group of four different divisions, realigning the corporate and marketing landscape for each of the big three pharma players.
Novartis has agreed to sell its veterinary products business to Eli Lilly, whose Elanco unit is among the biggest players in animal health, for about $5.4 billion
While the chattering classes were chattering about a potential Pfizer-AstraZeneca merger yesterday, three other drug giants were putting the finishing touches on a big announcement. Novartis, whose strategic review has been making headlines for almost a year, agreed to swap some assets with GlaxoSmithKline and sell its animal health business to Eli Lilly.
When a U.K. advisory committee reversed its earlier guidance and recommended the country's National Health Service add Novartis' meningitis B vaccine Bexsero to its national immunization program, it did so on condition that the NHS secure a "cost-effective price" for the jab. And now, it seems the country and the Swiss company may have different ideas of what that price should be.